Need To Know: One Analyst Is Much More Bullish On Totens Sparebank (OB:TOTG) Revenues

Totens Sparebank (OB:TOTG) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After this upgrade, Totens Sparebank's solo analyst is now forecasting revenues of kr419m in 2021. This would be a satisfactory 5.6% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to climb 17% to kr17.37. Prior to this update, the analyst had been forecasting revenues of kr333m and earnings per share (EPS) of kr17.13 in 2021. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

Check out our latest analysis for Totens Sparebank

The consensus price target increased 10% to kr180, with an improved revenue forecast carrying the promise of a more valuable business, in time.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2021 brings more of the same, according to the analyst, with revenue forecast to display 5.6% growth on an annualised basis. That is in line with its 5.1% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 8.1% annually. So it's pretty clear that Totens Sparebank is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with the analyst holding earnings per share steady, in line with previous estimates. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Given that the analyst appears to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Totens Sparebank.

The covering analyst is definitely bullish on Totens Sparebank, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including concerns around earnings quality. You can learn more, and discover the 1 other flag we've identified, for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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